We’re not talking about rest & relaxation, we mean Renovation & Reverse. Both of these represent very different but potentially beneficial opportunities for current or future home owners.
Reverse Mortgage: Today’s reverse mortgages have seen many improvements, including oversight and regulation to avoid issues that occurred in the past. However, it is important to understand that a reverse mortgage is not a financial windfall to be spent quickly, but part of a long range financial strategy to maximize equity in a home.
A Reverse Mortgage, or Home Equity Conversion Mortgage (HEMC) is a way to turn equity in a home into tax-free cash without having to make monthly mortgage payments. These loans are government insured and available to home owners over 62 years of age.
• Instead of monthly payments, the loan is repaid in one lump sum once the last borrower leaves the home.
• Borrower is expected to continue paying property taxes, insurance and to maintain the home.
For home owners over 62 and their heirs, Reverse mortgages (HEMC) and a Reverse for Purchase (HECM for Purchase) may have advantages for those planning their financial futures. If you are interested in learning more, please contact me directly.
Renovation Loans: At Fairway, we offer a variety of renovation loan products. These products allows consumers to make needed repairs and updates to a property without having to come up with additional money once they own the home because the costs are rolled directly into the mortgage.
Renovation loans offer a variety of options for consumers depending on their qualifications and what the home requires. It can vary from minor repairs to potential tear down/rebuilds (using existing foundations). If you have any questions or would like more information, please call your loan officer.
As always, we are happy to discuss all of your home financing needs and provide pre-approvals before you begin your home search.